Net Serviços de Comunicação S.A. is a publicly held corporation organized under the laws of Brazil. The Company controls a group of cable subscription television companies, together referred to as Net Serviços or the Company, and is the leading cable television Multiple System Operator (MSO) in Brazil. The shares of Net Serviços de Comunicação S.A. are traded on the São Paulo and Madrid Stock Exchanges, and its American Depositary Share receipts or ADS are traded on the Nasdaq National Market. The Company is located in Brazil and its headquarters are located in São Paulo.

The Company provides cable television services under the NET brand name and high-speed Internet access under the Net Virtua brand name through several cable networks located in the country’s largest cities. The Company and Empresa Brasileira de Telecomunicações S.A. – Embratel (Embratel), a subsidiary of Teléfonos del México S.A. de C.V. (Telmex), jointly provide voice services under the Net Fone Via Embratel brand name.

Acquisitions

On June 30, 2009 the Company completed the acquisition of 100% of the shares of ESC 90 Telecomunicações Ltda. See Note 4.

On December 29, 2008 the Company completed the acquisition of 100% of the shares and quotas of the companies operating in the pay-TV and broadband Internet market under the BigTv brand. See Note 4.

The Company holds the following share subsidiaries:

	Interest in share capital (percent)
	2009		2008
	Direct	Indirect	Direct	Indirect
Subsidiaries
Net Belo Horizonte Ltda.	-	100.00	-	100.00
Net Brasília Ltda.	-	100.00	-	100.00
Net Rio Ltda.	100.00	-	100.00	-
Net Recife Ltda.	100.00	-	100.00	-
Net São Paulo Ltda.	100.00	-	97.40	2.60
Net Campinas Ltda.	-	100.00	-	100.00
Net Indaiatuba Ltda.	-	-	100.00	-
Net São Carlos Ltda.	-	-	100.00	-
Net Franca Ltda.	-	-	100.00	-
Net Sul Comunicações Ltda.	-	-	100.00	-
Reyc Comércio e Participações Ltda.	100.00	-	26.94	73.06
Net Anápolis Ltda.	-	-	-	100.00
Net Bauru Ltda.	100.00	-	9.06	90.94
Net Campo Grande Ltda.	-	-	-	100.00
Net Goiânia Ltda.	100.00	-	-	100.00
Net Ribeirão Preto Ltda.	100.00	-	12.07	87.93
Net São José do Rio Preto Ltda.	-	-	-	100.00
Net Sorocaba Ltda.	100.00	-	-	100.00
Horizonte Sul Comunicações Ltda.	100.00	-	-	100.00
DR – Empresa de Distribuição e Recepção de TV Ltda.	-	-	-	100.00
Antenas Comunitárias Brasileiras Ltda.	-	-	-	100.00
Net Paraná Comunicações Ltda.	100.00	-	-	100.00
Net Florianópolis Ltda.	-	-	78.13	21.87
Net Maringá Ltda.	-	-	-	100.00
Net Arapongas Ltda.	-	-	-	100.00
Televisão a Cabo Criciúma Ltda.	-	-	40.00	60.00
Net Londrina Ltda.	-	-	-	100.00
Jacareí Cabo S.A.	100.00	-	-	100.00
TV Eucalipto Ltda.	-	-	-	100.00
TV Mogno Ltda.	-	-	-	100.00
Horizon Line Brasil Ltda.	-	-	8.18	91.82
Canbras TVA Cabo Ltda.	-	-	-	100.00
614 TVH Vale Ltda.	100.00	-	-	100.00
Vivax Ltda.	-	-	100.00	-
614 Telecomunicações Ltda. – Big TV	-	-	100.00	-
614 Serviços de Internet Maceió Ltda. – Big TV	100.00	-	-	100.00
614 TVT Maceió S.A. – Big TV	-	-	50.00	50.00
614 Serviços de Internet João Pessoa Ltda. – Big TV	100.00	-	-	100.00
614 TVP João Pessoa S.A. – Big TV	-	-	50.00	50.00
614 Interior Linha S.A. – Big TV	-	-	-	100.00
Zerelda Participações Ltda. – Big TV	-	-	-	100.00
TV a Cabo Guarapuava Ltda. – Big TV	-	-	-	100.00
TV Jacarandá Ltda. – Big TV	-	-	-	100.00
TV a Cabo Cascavel Ltda. – Big TV	-	-	-	100.00
EBS Empresa Brasileira de Sinais Ltda. – Big TV	-	-	-	100.00
TVC Oeste Paulista Ltda. – Big TV	-	-	-	100.00
614 TVG Guarulhos S.A. – Big TV	-	-	-	100.00
ESC 90 Telecomunicações Ltda.	100.00	-	-	-

During 2009, continuing its restructuring process, the Company has merged the net assets of the subsidiaries shown below:

Company	Date of merger		Company	Date of merger
Net Florianópolis Ltda.	02/28/2009		Net Sul Comunicações Ltda.	10/30/2009
614 Telecomunicações Ltda.	04/30/2009		Net São Carlos Ltda.	10/30/2009
614 Interior Linha S.A.	04/30/2009		DR – Emp. de Distr. e Recep. de TV Ltda.	10/30/2009
TVC Oeste Paulista Ltda.	04/30/2009		Vivax Ltda.	11/30/2009
Antenas Comunitárias Brasileiras Ltda.	09/30/2009		Net Indaiatuba Ltda.	11/30/2009
Televisão a Cabo Criciúma Ltda.	09/30/2009		Net Franca Ltda.	11/30/2009
Net Arapongas Ltda.	09/30/2009		Net Anápolis Ltda.	11/30/2009
Net Londrina Ltda.	09/30/2009		TV Jacarandá Ltda.	11/30/2009
Net Maringá Ltda.	09/30/2009		TV a Cabo Guarapuava Ltda.	11/30/2009
614 TVG Guarulhos S.A.	09/30/2009		TV a Cabo Cascavel Ltda.	11/30/2009
Net Campo Grande Ltda.	10/30/2009		614 TVP João Pessoa S.A.	11/30/2009
Net São José do Rio Preto Ltda.	10/30/2009		614 TVT Maceió S.A.	11/30/2009

In addition to having common and preferred shares on the São Paulo Stock Exchange, Bolsa de Valores de São Paulo (Bovespa), the Company holds preferred shares traded on Nasdaq as American Depositary Shares – ADS in the United States of America and is subject to the Securities and Exchange Commission – SEC regulations. Each ADS represents one preferred share traded under the code NETC.

The Company also has preferred shares that are traded on the Latibex, the Madrid Stock Exchange, and is therefore subject to the regulations of the Spanish Comisión Nacional del Mercado de Valores – CNMV.

The Company signed an agreement with Bovespa to adopt differentiated corporate governance practices, thus becoming eligible for a Level 2 listing, which was created to distinguish a select group of companies committed to differentiated corporate governance practices.